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Dunga refused to sell an "illusion" to Brazil fans after being appointed the coach of the national team for a second time on Tuesday.
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A FIFA World Cup winner as a player in 1994, Dunga succeeds Luiz Felipe Scolari, who resigned in the wake of Brazil's failure at the prestigious tournament on home soil.
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Dunga, who led Brazil to Copa America success in 2007 and Confederations Cup glory two years later, was far from positive as he was unveiled on Tuesday.
The 50-year-old said there was a lot of work to do for the five-time world champions, who were beaten 7-1 by eventual 2014 winners Germany in the semi-finals.
Dunga told reporters.
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